GBPUSD has become volatile, but still holding the bullish bias over 1.3670 to 1.3700 support level. GBPUSD bulls are active above 1.3700 psychological support area. Will the price strike higher in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s GBP/USD Technical Analysis.
May 4, 2021, | AtoZ Markets – GBPUSD is currently trading around 1.3881 area and trying to push lower. After breaking over 1.3670 to 1.3700 resistance area, the bulls pushed the price upward quite impulsively, but failed to sustain the bullish pressure above 1.4200 to 1.4230 key resistance level. As per the current price action, the price may face strong resistance around 1.3980 to 1.4000 area in the coming days.
GBPUSD Bulls Active As the Support Level Holding the Price Strongly
GBPUSD is currently residing near 1.3881 area and trying to push downside. However, the price broke over the dynamic level of 20 EMA with a daily bullish candle close.
Image: GBPUSD 4 Hour Chart
According to the 4-hour chart, GBPUSD bulls area active and currently trading around 1.3881 area. As per the current price action, the price may decline towards 1.3830 to 1.3800 area again in the process. So, if the price can bounce higher from 1.3800 to 1.3830 area with an impulsive bullish candle, the bulls may regain momentum and recover higher towards 1.3980 to 1.4000 area in the coming days. On the contrary, if the price can break below 1.3830 to 1.3800 area with a 4-hour bearish candle, the bears may push the price down towards 1.3700 to 1.3670 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downward. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 after having a bearish crossover. It indicates that the bears may push the price down in the coming days.
GBPUSD Bulls Are Still Optimistic
According to the daily chart, GBPUSD bulls are active and currently residing near 1.3881 area. As per the current scenario, if the price can have a daily bullish candle close over the last candle’s high, the bulls may push the price upside towards 1.3980 to 1.4000 area as a first target. The second target will be 1.4200 to 1.4230 key resistance area if the price can break above 1.3980 to 1.4000 area in the coming days.
Image: GBPUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong support to push the price higher. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process.
To conclude, as the overall momentum is still bullish, there is a high chance that GBPUSD may continue the bullish trend further. An impulsive daily close is required to identify the definite momentum in the days ahead.